The strength of the Melbourne market has yet again been put to the test with another lockdown. While stock levels remain relatively low the clearance rate has remained strong with some buyers content with purchasing properties sight unseen. Many agents have been hosting zoom style open for inspections or walk throughs (done by the vendors) which allow the buyers to inspect the property. Some buyers are comfortable purchasing a property site unseen but the majority of buyers are still uncomfortable with buying a property without doing an in person inspection.
We have continued to see the strength of the coastal markets with remote work looking likely for the foreseeable future. Much of the inner city market has lost the heat it once had and instead buyers are flooding to what was once considered a holiday home choosing to make this their primary place of residence. While the Melbourne market has seen a healthy 13.1% growth over the past 12 months regional Victoria has grown around 20.3%. The current lockdowns will have an impact on buyer demand, if lockdown rules are lifted to allow buyer inspections we would predict this market to boom even more in the lead up to summer.
As we head into the final quarter of the year there seems a lot of uncertainty surrounding what will be our way back to some normalcy. While some segments of the market may continue to suffer such as inner city apartments we would expect the market on the whole to continue to grow as we are seeing strong buyer confidence and a new appreciation for our home during these times. In particular we have seen the top end of the market grow just over 1.5% more than the middle and lower end of the market, no doubt in part to this market segment experiencing less income disruption than other segments and an increase in savings due to lockdowns and travel restrictions.